The Challenge Of Curbing Counterfeit Prescription Drug Growth Preventing The Perfect Storm Case Study Solution and Analysis
Intro
The Challenge Of Curbing Counterfeit Prescription Drug Growth Preventing The Perfect Storm Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information provider and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing market in general and The Challenge Of Curbing Counterfeit Prescription Drug Growth Preventing The Perfect Storm Case Study Solution in specific. These aspects consist of;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Challenge Of Curbing Counterfeit Prescription Drug Growth Preventing The Perfect Storm Case Study Help has specific strengths that can be made use of to decrease the risks, conquer the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of The Challenge Of Curbing Counterfeit Prescription Drug Growth Preventing The Perfect Storm Case Study Help in the publishing industry i.e. 60 years permits the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and offer high value to its customers.
• Strong financial position permits the business to consider numerous advancement opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which might increase restraints for the business in implementing its advancement program. The weaknesses of The Challenge Of Curbing Counterfeit Prescription Drug Growth Preventing The Perfect Storm Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular growth strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, affecting The Challenge Of Curbing Counterfeit Prescription Drug Growth Preventing The Perfect Storm Case Study Analysis too, however the development could be restored by availing specific opportunities provided in the market. The marketplace chances for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge financial resources.
Risks
The altering macro trends in the market and increasing competition in the publishing industry has actually posed certain threats to The Challenge Of Curbing Counterfeit Prescription Drug Growth Preventing The Perfect Storm Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of The Challenge Of Curbing Counterfeit Prescription Drug Growth Preventing The Perfect Storm Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing certain strategies like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the industry along with presence of high competition increases the danger of losing the consumer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly total earnings of The Challenge Of Curbing Counterfeit Prescription Drug Growth Preventing The Perfect Storm Case Study Solution throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the company is quite efficient in attracting a big number of consumers at a potential rate.
Along with it, the second graph which reveals the annual development in the The Challenge Of Curbing Counterfeit Prescription Drug Growth Preventing The Perfect Storm Case Study Solution total assets, shows that the company is rather efficient in adding worth to its possessions through its incomes. The growth in properties reveals that the overall value of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the given information could be the analysis concerning the distribution of overall earnings of the business. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company segments with a prospective development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces impacting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the total political forces affecting The Challenge Of Curbing Counterfeit Prescription Drug Growth Preventing The Perfect Storm Case Study Solution business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading useful products and so on. China has the highest population on the planet with a high population development, showing the increasing number of customers of the The Challenge Of Curbing Counterfeit Prescription Drug Growth Preventing The Perfect Storm Case Study Solution. The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Enhancement of science and technology together with the rise of digital publishing could minimize the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting The Challenge Of Curbing Counterfeit Prescription Drug Growth Preventing The Perfect Storm Case Study Help includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The alternative items for the published files is the files presented in the virtual libraries on certain websites. The changing consumer choices towards digital learning increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Challenge Of Curbing Counterfeit Prescription Drug Growth Preventing The Perfect Storm Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Challenge Of Curbing Counterfeit Prescription Drug Growth Preventing The Perfect Storm Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also one of the prominent players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the business require an immediate service to prevent the declining industry growth. Introduction of digital publishing could prove to be an instant service with low quantity of risk for the business. The company could also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company ought to first gathers the data associated with the consumer demand, the prospective markets, the government guidelines and the data related to the rivals presented in the market. After that, the company should decide one potential segment for its initial offering. It ought to gather research that how it could differentiate its digital publishing from the existing rivals' products. The actions above the business ought to go for the preliminary offering. If the initial offering proves a success, the business needs to opt for the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, revealing a risk to the business's long term presence, however the situation can be controlled by thinking about a development strategy in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.
